011_버크셔 해서웨이|Berkshire Hathaway|伯克希尔哈撒韦_2 (영어|English|英语)

Category	Description
Ticker	BRK-B
Company	Berkshire Hathaway Inc.
Sector	Financial
Industry	Insurance - Diversified
Country	USA
Market Cap	675.88B
Volume	3,098,942
Dividend%	N/A
Website	www.berkshirehathaway.com

Company Introduction

Berkshire Hathaway is a New England local textile company founded in 1839 by Oliver Chace and headquartered in Omaha, NE. It was purchased by Warren Buffett in 1965 and became an investment holding company. Vice-Presidents are Charlie Munger, Ajit Zain (Insurance Division) and Greg Able (Energy Division).

Berkshire Hathaway operates through a variety of subsidiaries including property and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing and retail services.

Insurance Segments: GEICO primarily sells auto insurance and is Berkshire Hathaway's main source of income. Berkshire Hathaway Reinsurance Group underwrites excess loss and proportional reinsurance worldwide. Berkshire Hathaway Primary Group primarily undertakes several lines of property and accident insurance.

Other Segments: The BNSF segment operates rail systems in North America and Berkshire Hathaway Energy operates electricity and gas utilities, including power generation and distribution activities, and real estate brokerage activities. The McLane Company provides wholesale distribution of grocery and non-food items. The Services and Retail segment operates a variety of retail businesses including partial aircraft ownership programs, airline pilot training, electronic component distribution, auto dealerships, trailers and furniture rentals.

Investment Point

1) Investment return that beats the market: Investing Berkshire Hathaway produces the return on portfolio chosen by a world-class investor Warren Buffett, which can generate an average annual return of 15%, higher than the S&P 500 market return over the past 30 years. In other words, if you invested $100 30 years ago, it had become about $8,100 now, which is 8100% investment return.

2) Benchmarking the World's Best Portfolio: The World's Best Investor Warren Buffett's investment portfolio is published every quarter, so you can check the recent portfolio share and changes through https://whalewisdom.com/. For reference, the top 5 portfolios for the first quarter of 2021 were Apple (40%), Bank of America (14.45%), American Express (7.93%), Coca-Cola (7.8%), and Kraft Heinz (4.82%) which account for 75% of the total.

 

 

Past Revenue Trend

Berkshire Hathaway is showing stable growth through insurance and investment income, and has grown at an average of 3% over the past five years.

l  Trailing 12 Months: Sum of the previous 12 months

l  Quarterly: quarterly results

l  YoY Quarterly Growth: Year-on-year growth rate

Past EPS Trend

Unlike sales, EPS deteriorated like the global stock market in a difficult situation last year, then recovered and has grown at an average annual rate of 34% over the past five years.

l  EPS: Earning Per Share

Future Sales and EPS trends

Sales have stagnated in difficult circumstances at 2020. And sales are expected to grow at a CAGR of 6% over the next three years, reverse profit growth at -28%, and reverse EPS growth at -26%.

Stock price trend and target price

The average target price of Wall Street analysts is 317.00$ (highest price 317$, lowest price  317$), showing 13.97% upside potential. Moreover, only 1 analyst gives a buy opinion. (As of August 3, 21)

For hedge funds, the number of shares held decreased by 5.4M from the previous quarter.

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The investment decision is yours,

but I hope it will be useful information for your investment…